Team Louisville Real Estate News

Don't Lose Your Home to Foreclosure

2009-11-19T11:53:00.000-08:00

Are you struggling to make their monthly mortgage payments and facing foreclosure. We have good news; most foreclosures can be avoided. Their are many options. Which is right for you? It depends greatly on your situation and what your intentions are concerning the home.

Questions to consider:

Are my circumstances temporary?
Do I want to keep my home?
Do I want to sell my home but it is not worth what I owe on it? (And do not have the money to pay the shortage)
Should I try to modify my loan? (Do I need a professional to negotiate for me?)

As a CDPE (certified distressed property expert) I can help you navigate through a sea of information and keep you from losing your home to foreclosure.

Staging 'Kitty's Litter Box' When Selling Your Home

2009-07-30T11:20:00.000-07:00

Selling your house can be challenging when you have pets and we are going to focus today on your CAT. Your furry friend and family member. I understand and can empathize with my selling clients when it comes to this subject. We all love our 'babies'. We have plenty of inspiration to share some kitty tips when selling.

The dreaded 'litter box" can pose some challenges when you put your house up for sale. I've seen litter boxes in just about every room now in working with sellers over a number of years. I still remember when we were looking for a house to buy, we toured two houses with cats. The one house had about 7 litter boxes throughout the house including bedrooms. Hmmmm....do you think they had a problem? The other house had only one litter box and it was located in their family room right by the sofa. It reeked. Needless to say, we didn't buy either of those houses. Downplaying the presence as well as the location of the litter box really is critical when selling.

Location...Location...Location

I've found the best locations for a litter box is out of the way places like the basement and laundry/mudroom. I've seen them in bathrooms too but I've found that buyers really want to see the bathroom and not get distracted by a litter box. One way to help kitties better transition when moving their box was to put their food in close range of it. This works. But remember to never put the liter box IN the kitchen.

What's That Smell?
If you have cats then you know that if you don't keep their throne pristine, it's going to smell. When selling, this is a no brainer. You may have to scoop 3-4 times a day but this is a MUST. Do you have a COVER for your box? If you do, great! Now make sure you turn the box to make sure the hole is facing a wall. If you don't have a "cover", think about getting one. If the box has to be present during showings, at least the box is covered up and the hole is against the wall. Buyers really do not want to see inside of the box even if it is pristine. They just don't.
I also recommend buying those "stick ups" they sell in the pet aisle or pet stores that help neutralize odor. Stick that baby on the side of the covered litter box. De-activated charcoal also help neutralize odors. And a quick spritz of Febreeze in the area before a showing is a good idea too. Remember I said "quick spritz"........NOT half the bottle.

Take It Outside
The BEST solution I give my clients is to place the litter box in the garage during a showing if at all possible. I know this doesn't work for some kitties that can't be trusted but I've found that it works for the majority. Usually having a missing litter box for an hour is not a problem.

Creative Solution

Perhaps you can incorporate the litter box into your laundry room cabinetry so it is out of the way and more "visually appealing". This works really well if you can put the kitty's door on the side of the cabinet. Then all you have to do is open up the front doors to scoop and be done. It's hidden and better than a covered litter box.

Talk About "Staging" Your Litter Box

Who knew there were such a wide variety of creative litter box options out there? (I'd just suggest turning that hole around to face the wall.)

What about these cool styles?

(Better in a laundry room or basement than in a bath)

For the modern cat:

Entry Table AND Litter box in one...Who Knew?

Need a Litter box in the Office? Just be careful that you get the right box when looking for that file....

I'm having too much fun with this...can you tell?

Here's some other Staging Tips For Kitty When Selling:

Princess Perspective:
This might be harsh, but when you are selling, kitty is NOT the princess (or prince) anymore. The castle is for sale and things cannot stay the way they are. That means that the cat jungle/scratching post tower has to put away, the million mouse and feather toys must be rounded up and the sunning window perch for cats has to be disassembled and stored away. Yes, I realize that it's your cat's favorite place but your potential buyers needs to see how pretty the window is, not the pile of cat hair left on the cushion attached to the window.

Meow Mix Mayhem:
Did you know that kitty's dishes shouldn't be out during a showing? It's so much a part of our everyday lives that we don't think about it, right? But when selling, they need to be gone. This also goes for those cool plug in water fountains. The cat may love them but with their messy cord and location near a plug (which is usually in the kitchen) it's not a great thing to keep around when you're trying to impress buyers.

Not Everyone Loves Your Cat

I know, it's your baby. I understand. I have a furry child myself and I love her dearly. But not everyone is a cat person. Or likes pets at all. Many are allergic to cats as well. When you are selling, it is really important to see it from the perspective buyer's point of view.

Fur Ball Fiasco:
If you have a cat, you've definitely have Cat Hair. Getting rid of as much cat hair as possible and staying on top of it by cleaning frequently is critical. Forget the lint brush. The best thing to use is a rubber glove. A damp cloth works really well too. The Swiffer is another great product to use on the floors. It is amazing all the invisible hair you can't see until you look at the bottom of the swiffer pad when you're done. Whoa.

Stay Or Go?

Have you been waiting for me to answer the obvious question: What the heck should I do with my cat during a showing? Don't worry, your cat will probably be fine staying at home. More than likely the cat will either go hide or lay on a bed and look slightly annoyed at the interruption from strangers. If your cat is never to be outside, you may want to consider putting him in a cat carrier or taking him with you. Better safe than sorry.

Even though your pet is a huge part of your family, downplaying their presence while selling your house is a smart move. Remember it's all about the house and getting it sold. You do not want kitty to cost you a sale.

Do you owe more than your house is worth? Avoid Foreclosure

2009-06-10T12:30:00.000-07:00

DO YOU QUALIFY?

Qualifying for a Short Sale

Hard comparable sales must substantiate that the home is worth less than the unpaid balance due the lender.
The Mortgage is in or Near Default Status. (Many believe you can receive help without being behind on your mortgage... it is worth a try but MOST mortgage companies will not entertain a short sale unless you are in default.)
The Seller Has Fallen on Hard Times.
The seller must submit a letter of hardship that explains why the seller can not pay the difference due upon sale, including why the seller has or will stop making the monthly payments. (They DO NOT want medical details... Privacy is vital)
A few examples that do NOT constitute a hardship are:
Bad purchase decisions. Blowing your paycheck on a home theater system with surround sound does not qualify as a hardship.
Unhappy with the neighbors. Even if the neighbors are growing drugs, that will not qualify as a hardship. (Call your local law enforcement)
Buying another home. The lender will not care if you have decided the home is no longer suitable for you or your family.
Pregnancy. Increasing the size of your family or starting a family is not considered a hardship.
Moving into an apartment. If you decide to move out of your home, that is a lifestyle decision and not a very good reason to abandon your home.

Examples of hardship are:
Unemployment
Divorce
Medical emergency / sudden illness
Bankruptcy
Death

The lender will probably want to see a copy of the seller's tax returns and / or a financial statement. If the lender discovers assets, the lender may not grant the short sale because the lender will feel that the seller has the ability to pay the shorted difference. Sellers with assets may still be granted a short sale but could be required to pay back the shortfall.
For example, if the seller has cash in a savings account, owns other real estate, stocks, bonds or even IRA accounts, the lender will most likely determine that the seller has assets. However, the lender might discount the amount the seller is required to pay back.
　
　
Short Sale Consequences
A short sale is dependent on a buyer making an offer to purchase. If you do not receive an offer, you will not qualify for a short sale. So even if you meet all the other criteria, it is possible that no one will buy the property. It is also dependent on the lender accepting the buyer's offer. If the lender rejects the offer, a short sale will not take place.

Tax Consequences
If the lender agrees to the short sale, the lender may possess the right to issue you a 1099 for the shorted difference, due to a provision in the IRS code about debt forgiveness. Many situations are exempt from debt forgiveness, according to the Mortgage Forgiveness Debt Relief Act of 2007. You should speak to a real estate lawyer and a tax accountant to determine the amount of short sale tax consequences, and whether you can afford to pay those taxes, if any.

Blemished Credit Report
A short sale will show up on your credit report. It's a pre-foreclosure that has been redeemed. Short sales do cause damage your credit. While the damage to your credit report may not seem as significantly bad as a foreclosure to you, creditors may not make the distinction. Some experts say the drop in your FICO score is as significant as a foreclosure reporting.

As a real estate agent, I am not licensed as a lawyer nor a CPA and cannot advise on those consequences. Except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, be aware the I.R.S. could consider debt forgiveness as income. Also, there is no guarantee that a lender who accepts a short sale (Unless they agree in writing not to do so) will not legally pursue a borrower for the difference between the amount owed and the amount paid. In some states, this amount is known as a deficiency. A lawyer can determine whether your loan qualifies for a deficiency judgment or claim.